Just when you thought Goldman Sachs could go no lower, we have more evidence of the firm's complete lack of moral backbone. It's been gambling on starvation and making strong profits from hunger.
Last month, the United Nations Food and Agriculture Organization warned that staple food prices could rise by as much as 40% over the next decade.
And one of the key causes is the investment banks like Goldman Sachs gambling with the prices in food contracts and derivatives. According to The Independent , Goldman Sachs and others had lobbied hard for the deregulation of the food market throughout the 1990s. Now, they are reaping the rewards, sending food prices through the roof. Significantly, the prices of vital crops like millet, cassava and potatoes have not gone up that high as they are not traded on the futures market. Not so for other crops like wheat. Think of that next time you notice the price of bread.
Johann Hari puts it bluntly: "While the supply and demand of food stayed pretty much the same, the supply and demand for derivatives based on food massively rose – which meant the all-rolled-into-one price shot up, and the starvation began … So it has come to this. The world's wealthiest speculators set up a casino where the chips were the stomachs of hundreds of millions of innocent people. They gambled on increasing starvation, and won. Their Wasteland moment created a real wasteland. What does it say about our political and economic system that we can so casually inflict so much pain?"
There's only one answer and that is we need to re-regulate and bring companies like Goldman Sachs into line and stop them using people's stomachs as dice.